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Nigeria — FAAC Meeting Aborted Due To N37. 76 Billion Shortage In NNPC Revenue

The monthly Federal Account Allocation Committee, FAAC, meeting, which began on Monday, didn't come to a conclusion because of the argument which arised due to the 37.76 billion naira revenue brought out by the NNPC.

  Mr Mahmoud Yenusa, chairman, Finance Commissioners Forum, stated the forum refused to accept the money brought by the NNPC due to the fact that it was far lower than what was expected for the month.

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“We started this meeting last week and NNPC did not submit their figures until yesterday (Monday), which we were not able to review until this morning.

“This morning when we were reviewing the figures as presented by the NNPC, it came as a great surprise to see that the amount was less than N100 billion.
“So we (states) decided that we will not collect the amount presented.”
“We are contesting the figures because pipeline vandalism has reduced, while crude oil prices have continued to go up.

“On this note, we are wondering why the nation cannot raise enough money through that sector to share to states so that everyone can pay workers, contractors and so on.
“We are well aware that this development may affect the payment of salaries in states, but we cannot hurriedly accept this money and then later cry foul play.
“So, we should all be patient. But we hope that with this latest development, NNPC will do the needful as soon as possible,” he said, when interviewed by newsmen.

Ahmed Idris, Accountant-General of Nigeria, when interview also stated that the meeting ended with discrepancies due to the irregularities in the figures.

“Obviously, you are all aware that anything that has to do with federation revenue is statutory and, therefore, constitutional and we must always verify our figures to the last kobo.

“Failing to do so will amount to committing illegality and unconstitutionality. It is on this note that we observe some issues in the figures given by one of the major revenue generating agencies namely the NNPC.

“The committee is of the opinion that until and unless these figures are reconciled, corrected, verified and factual; we cannot distribute the revenue as the case is.
“Let me again be quick to inform Nigerians that we are sensitive with the issue and to the fact that state governments may find it difficult without this money.
“But we have to follow the constitution and the laws for distribution of revenue,” said Ahmed.

The document obtained by News Agency of Nigeria (NAN), showed that the NNPC paid in N74.06 billion to the country's account as February's oil revenue.

“Compared to the collection of N111.84 billion in January 2018, the February collection of N74.06 billion is lower by N37. 76 billion or 33 per cent.

“We were unable to meet the approved budget as a result of low collection from Concession Rentals and Petroleum Sharing Contracts, PSC, Royalty.

“We wish to note that the sum of N30.5 million for the Misc Oil revenue and N6.11 million for Gas Flared are on transit at the end of Feb. 2018.
“Furthermore, we received 16. 56 million dollars out of the 85.94 million dollars expected from PSC and MCA lifting for the month under review, therefore leaving $68.65 million as outstanding,” said NNPC in defense.